The Broad Principle That Requires Expenses to Be Reported in the Same

question 115

Multiple Choice

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:

• A) Recognition principle.
• B) Cost principle.
• C) Cash basis of accounting.
• D) Matching principle.
• E) Time period principle.

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Definitions:

U.S. District Courts

Federal courts that serve as the trial-level courts in the United States federal court system, handling both civil and criminal cases.

Trial Courts

The courts where cases are first heard, involving the presentation of evidence and legal arguments to a judge or jury.

Federal Court System

The three-tiered judicial system of the United States consisting of district courts, appellate courts, and the Supreme Court, which interprets and applies federal laws and Constitution.

Diversity-of-Citizenship

A basis for federal court jurisdiction when parties in a lawsuit are citizens of different states or a foreign country, allowing for cases to be heard in federal court.